Construction output falls following several months of solid growth

Total UK construction output fell by 0.3% in Q4 2018, following several months of solid growth, according to the Office for National Statistics.

Annual construction growth was 0.6%, again the lowest it has been since 2012.The drop in output in Q4 2018 was driven by repair and maintenance works, which fell by 2.8% over the quarter. All new work increased by 1.1%.

Following a strong Q3, GDP slowed to 0.2% in Q4 2018, contributing to annual GDP growth for 2018 of 1.4%, the lowest rate seen since 2012. Car and steel product manufacturing declined sharply, and construction output also fell quarter on quarter.

The Services sector provided the only positive contribution to GDP in Q4 2018, increasing by 0.4%. Growth came primarily from professional, scientific and technical activities but real estate, and health and social work activities also made positive contributions. Annual services growth was 1.7%, the lowest since 2011.

Production growth fell by 1.1% in Q4 2018, with all four of its component sectors declining. One of these, manufacturing, saw growth fall by 0.9%. Annual production growth was 0.7%, the lowest since 2013.